- Top 10 Cryptocurrencies for January 25 2023; Bitcoin at US$22K - January 26, 2023
- Top 10 Best Crypto Casinos of December 2022 - December 14, 2022
- Apple Drops Encryption Plans that would Directly Benefit Crypto – - December 13, 2022
Shiba Inu might bounce back, but right now, investors are willing to sell the crypto for smart investments
Shiba Inu, a dog-based meme coin is a new kid in the block which has gained a lot of popularity in recent times. It has topped the charts making the meme coin king dogecoin tumble down. Shiba Inu witnessed tremendous growth of almost 700% till the second quarter of 2021 and was competing with Dogecoin, whose value skyrocketed with Elon Musk’s tweets. However, when the crypto market crashed in 2021, Shiba Inu’s price collapsed dramatically. It is quite natural that investors are caught in limbo not having a clear idea if they should hold back or sell Shiba Inu. The dogecoin killer is also about to be traded on California-based trading platform Robinhood. Experts say these are just rumors which are responsible for Shiba Inu’s spike in price, there are many other reasons to speculate its decline in the coin market. Read on to find out how all the roads of speculation lead towards selling Shiba Inu.
Fake SHIB community growth
Shiba Inu backers have carefully cultivated an online community that focuses on trading and promoting cryptocurrency and related NFTs. Now, they have taken a step further by attempting to restrict the SHIB supply and increase its market value. The community members have destroyed over 239 million and 400 million tokens respectively in December and November. But no matter how many tokens they burn, the demand keeps falling at a potentially higher rate, resulting in a market crash.
Weak block-chain functionalities
The demand for SHIB tokens is hugely affected by its fundamentals. Shiba Inu’s fundamentals and functionalities are still weak, which also caused Ethereum’s network to suffer making it face soaring fees, that went up as high as US$30 per transfer. Shiba Inu’s developers will wait until ETH’s planned upgrade can resolve these challenges. In the meantime, SHIB can continue working on expanding its functionalities and creating an immersive metaverse experience.
Poor synchronization to Ether’s blockchain
Shiba Inu is an ERC-20 token, that is built on top of Ether’s blockchain. While this makes it interoperable with the Ethereum network as well as with DApps running on it, Shiba Inu is constrained by the limitations of the bigger blockchain. And for a programmable blockchain that utilizes smart contracts like Shiba Inu, it is all about attracting more developers to the ecosystem. There have been several reported incidents revolving around the speed, scalability, and accuracy of the network.
Fewer real-world use cases compared to others
No signs of institutional adoption
Many cryptocurrencies threaten to replace fiat currencies. But there is still no evidence or speculation that Shiba Inu will be facing any institutional adoption in the coming years. For SHIB holders, volatility is still a major issue. Moreover, several market analysts and crypto specialists have suggested investors consider Shiba Inu only for short-term investments, and not choose it as a long-term investment asset.
Highly concentrated ownership
The token lacks utility and is heavily concentrated with very few accounts, both of which create a substantial risk for the investors. If just a few of those token holders decide to cash out, there might be an occurrence where Shiba Inu prices may implode significantly.
Dogged by intense competition
Even though Shiba Inu is considered one of the biggest meme coins in the market, the crypto has even bigger competitors, besides Dogecoin, which include Ethereum, Solana, and Cardano. These cryptos are gaining popularity and defining the cryptocurrency market of the future. The kind of growth that these cryptos have portrayed has left out other cryptos like Shiba Inu behind. Community support alone cannot push Shiba Inu beyond what it is presently.
Can fade out in a regulated environment
Most investors are interested in cryptos due to their decentralized, unregulated nature, making investors feel like they own a piece of asset that is outside the government infrastructure. But the absence of regulations is like a double-edged sword. The presence of regulations in the market can bring unforeseen circumstances, driving away several investors. This phenomenon does not only limit itself to Shiba Inu. Other cryptocurrencies will also face regulations in the coming years.
Discouraging numbers in terms of growth
Its been several days, but the SHIB token has failed to reach the US$1 value or more. Bitcoin drove the value of the entire crypto market to US$3 trillion within a matter of months, whereas Shiba Inu has very limited potential for gains, discouraging investors from getting on board with the crypto.
Not so good performance in gaining popularity
Long-term SHIB investors are now realizing that it is futile to try to swim upwards. The crypto has not been performing well, and its chances of success are much lower than anticipated. However, the crypto holders believe that in the future Shiba Inu will bounce back to reveal its true potential.